What Is a Goods Received Note (GRN)?
The document that turns "the delivery arrived" into a fact the system can trust — what a GRN records, why it must be independent of the buyer, and how it anchors the three-way match.
A Goods Received Note (GRN) is the record of what actually arrived — created at the moment goods are received, against the purchase order that ordered them. It states which items came in, in what quantity, in what condition, on what date, received by whom. It is the difference between "the supplier says they delivered 100" and "we counted 100 in", and that difference is where a surprising amount of money is defended or lost.
What a GRN records
- The linked PO — so what arrived can be checked against what was ordered, and the open balance updated.
- Item and quantity received — the counted reality, which may be less than, equal to, or more than the PO line.
- Condition on arrival — damage, short shelf life, wrong specification, all noted before anyone signs.
- Date and receiver — the who and when, which becomes part of the audit trail.
- Discrepancies — short deliveries, over-deliveries, and rejects, flagged rather than silently absorbed.
A GRN is not a delivery note
The delivery note comes from the supplier and states what they say they sent. The GRN is created by you and states what you actually counted in. Signing the driver’s delivery note unread and calling it "received" is the single most common receiving failure — it records the supplier’s claim as if it were your verification. The GRN exists precisely to be the buyer’s independent record.
Why independence matters
The person who ordered the goods should not be the only person who confirms they arrived — otherwise a single individual can order, receive, and approve payment for goods that never came, and no document contradicts them. Independent receiving is a textbook segregation of duties control: the GRN is created by the store or receiving function, against the buyer’s PO, so two different hands touch the transaction before money moves. The note is only as honest as the count behind it, which is why receiving means weighing and counting at the door, not initialling paperwork.
The GRN as the anchor of the three-way match
The GRN is the middle document of the three-way match: PO (what was ordered) ↔ GRN (what was received) ↔ invoice (what is being charged). Without it, the match collapses into a two-way check — PO against invoice — which verifies that you agreed a price but never that the goods actually arrived. That is exactly the gap through which you pay for short deliveries and phantom stock. The GRN is what lets an invoice be paid on the strength of "we received this", not "we ordered this".
| Scenario at receiving | What the GRN records | What it prevents |
|---|---|---|
| Ordered 100, received 80 | GRN quantity 80; PO balance 20 stays open | Paying the full invoice for 100 |
| Ordered 100, received 110 | GRN flags 10 over-delivery for a decision | Silently absorbing (and paying for) unordered stock |
| Goods damaged on arrival | GRN notes condition; rejects excluded from stock | Damaged units entering inventory and being sold or issued |
| No delivery, invoice arrives | No GRN exists to match | Paying for goods that never came |
From paper pad to system record
On paper, the GRN is a pad in the store that finance never sees until month-end, and the match happens (if at all) as a manual reconciliation weeks later. In a system, receiving against the PO is the GRN: stock updates the instant goods are booked in, the PO, receiving, and matching live as linked documents, and any discrepancy surfaces immediately instead of at a quarterly audit. It is one step in the wider procure-to-pay flow — the step where a promise on paper becomes stock you can actually count.
Book goods in against the PO, at the door
AWRA OpsHub turns receiving into a live GRN — linked to the PO, updating stock instantly, flagging shortages and over-deliveries before the invoice is paid.
See receiving and matchingFrequently asked questions
What is the difference between a GRN and a delivery note?
The delivery note is issued by the supplier and states what they claim to have sent. The Goods Received Note is created by you and states what you actually counted and inspected on arrival. The GRN is your independent verification; the delivery note is the supplier’s claim. Signing the delivery note is not the same as raising a GRN.
Why should the person who ordered goods not be the one who receives them?
Because concentrating ordering, receiving, and payment approval in one person removes every check against fraud or error — they could authorise payment for goods that never arrived. Independent receiving (segregation of duties) means the GRN is created by a different hand than the PO, so the transaction is verified, not just asserted.
How does a GRN fit into three-way matching?
It is the middle document. Three-way matching compares the purchase order (ordered), the GRN (received), and the invoice (charged). The GRN is what proves goods actually arrived; without it you can only do a two-way match of PO against invoice, which confirms an agreed price but never confirms delivery.
Do small businesses need formal GRNs?
The principle scales down even if the paperwork does not. Count every delivery against the order before signing, note shortages and damage, and pay only against what was actually received. That is a GRN in spirit. The point where a scribbled pad stops coping — volume, multiple receivers, partial deliveries — is usually the signal to move receiving into a system.
